PayPal Cashback Mastercard will no longer offer 2% cash back

Credit: Getty Images

Credit: Getty Images

Editor’s note: This article was written by Nick Cole and originally appeared on

Do you have the PayPal Cashback Mastercard in your wallet? If so, we have some bad news.

The Synchrony Bank-backed cash back credit card soon will reduce the earnings potential of its rewards structure. PayPal recently notified existing cardholders that a reduction of cash back benefits is coming later in 2024.

And, though it has become one of Team Clark’s favorite cards for online shopping thanks to 3% cash back on purchases made via PayPal, it soon will no longer qualify for our list of 2% cash back credit cards.

The premise of the PayPal Cashback Mastercard is pretty simple: Unlimited 3% cash back on purchases made with the card via PayPal and unlimited 2% cash back on all other purchases. No annual fee.

But according to an email distributed to cardholders in late May, the 2% cash back benefit will soon be a thing of the past.

Effective Aug. 1, purchases made using your card (but not through PayPal checkout) will be reduced to unlimited 1.5% cash back.

The 3% back on purchases made through PayPal will remain unaltered.

Here’s a look at the modified cash back earnings that was distributed to customers via email in May:

3%: Each Eligible Purchase made by you through your PayPal account (online or in-store), or when you send money to other PayPal users through your PayPal account will earn 3% Cash Rewards.

2%: Each Eligible Purchase made by you everywhere else that Mastercard is accepted will earn

2% Cash Rewards until July 31, 2024 and thereafter 1.5%.

So, to recap: Between now and July 31, the rewards program will remain the same. On Aug. 1, you’ll see a half-percent reduction in your cashback earnings potential on non-PayPal purchases.

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